climateandcapitalism.com
Carbon Pricing Problem: It Doesn't Work
It's an article of faith among capitalist economists that the best solution to "market failure" is "more markets." Convert the problem into a commodity, and the market will magically solve it. John Bellamy Foster writes: "For orthodox economists, ecological degradation is evidence of market failure. The market is unable to guide firms in the efficient use of environmental assets if they are not already fully incorporated within the market system by means of a rational price structure. The first task of environmental economists therefore is to transform ecological assets into marketable goods. For example, if clean air is not a marketable good with a price, then the market places no value on it…. The answer to this, from the standpoint of neoclassical environmental economics, is to create markets in clean air, thereby internalizing such external costs within the market. The overall logic is one of bringing the earth within the balance sheet." (Ecology Against Capitalism, p.27) Articles